New York






USD steady, focus on ECB meeting

11 Sep 2019

As inventors now concentrate on the European Central Bank’s rate decision meeting on Thursday, the EUR/USD lacks clear directional bias, remaining within the mid-1.10 range. The pair found support in the German government thinking about fiscal stimulus to help the economy without violating national spending laws. However, traders did not place any bullish bets due to a possibility of the ECB easing additional monetary. 

With the trade war talks about to resume, U.S. Treasury bond yields are going higher, boosting the greenback. The EUR/USD is being traded in the 1.1050 region. Investors are predicting that the ECB is going to loosen monetary conditions so to see ease inflation pressures to overcome the economic slowdown. Senior market analyst at Gain Capital in Singapore, Matt Simpson, ‘We’ve had the trade-war boost last week, it’s filtered through this week, and so markets are taking a bit of a breather,” he said. “Now it’s in that little in-between stage - what’s going to keep to keep that value going?’

The British pound is closing in on a six-week high of $1.2385 hit as a no-deal Brexit is likely to happen. The UK jobs report continued to push the currency forward on Tuesday and highlighted that the employment rate dropped to 3.8%. The Cable is being traded within the 1.2300 region. Further talks between the EU and the UK on Brexit will be a major influence on the pair’s future.